How Much Does It Cost to Start a Business in the US?
One of the most common questions from foreign entrepreneurs is: how much does it really cost to form a company in America? The answer depends on the state you choose, the type of business structure, and the services you need. Here is a complete breakdown of all costs involved.
Florida LLC Formation Costs
- State Filing Fee: $125 (one-time, paid to Florida Division of Corporations)
- Registered Agent Fee: $50–$300/year (required by law)
- Annual Report Filing Guide">Annual Report Fee: $138.75/year (due by May 1st)
- Operating Agreement: $0–$500 (can be done yourself or with an attorney)
- EIN Application: Free (applied directly through IRS)
First-Year Total Cost Estimate
| Expense | Cost |
|---|---|
| State Filing Fee | $125 |
| Registered Agent (1 year) | $150 |
| Annual Report Filing Guide">Annual Report | $138.75 |
| Business Bank Account | $0–$50 |
| Business License (if required) | $50–$400 |
| Professional Formation services" class="text-teal-600 hover:text-teal-700 font-medium underline decoration-teal-300 hover:decoration-teal-500 transition-colors">Service | $0–$500 |
| Total (Estimated) | $463–$1,313 |
Ongoing Annual Costs
- Registered Agent: $50–$300/year
- Annual Report Filing Guide">Annual Report: $138.75/year
- Bookkeeping">Accounting/Bookkeeping: $500–$3,000/year
- Tax Preparation: $300–$1,500/year
- Business Insurance: $500–$2,000/year
Optional but Recommended Costs
- Trademark Registration: $250–$350 per class (USPTO filing fee)
- Business Company Website">Website: $500–$5,000 (one-time setup)
- Virtual Office Address: $50–$200/month
- Business Phone Number: $10–$30/month
Delaware vs Florida">Delaware vs Florida Cost Comparison
| Cost | Florida | Delaware vs Florida">Delaware |
|---|---|---|
| Filing Fee | $125 | $90 |
| Annual Report Filing Guide">Annual Report | $138.75 | $300 (Franchise Business">franchise tax) |
| Registered Agent | $50–$300 | $50–$300 |
How to Minimize Your Costs
- File directly with the state instead of using expensive formation services
- Apply for your EIN directly through the IRS Company Website">website (it is free)
- Use online Bookkeeping">accounting software instead of hiring a full-time accountant
- Choose a state with low ongoing fees (Florida is one of the most affordable)
Conclusion
Starting a company in America is more affordable than most people think. With as little as $500–$1,000, you can have a fully operational Florida LLC ready to do business. The key is understanding all the costs upfront and planning accordingly to avoid surprises.